Gas prices are inching higher in Northern California, but just be thankful you don’t have to fill up in Southern California, where prices could jump 37 cents a gallon this weekend.
The Consumer Watchdog group said that the switch to the state’s more expensive summer blend of fuel triggered the increase.
But the impact will not be as severe in Northern California. Maybe a dime or two.
“Northern Cal won’t face the same spike,” said Consumer Watchdog President Jamie Court. “The reason is the summer blend changeover took place according to schedule on Feb. 15 in the north but was delayed in the south for a week, and that caused this disruption.
“Now it will be SoCal’s turn, and it will be in for a big-time gasoline price spike.”
The state average stood at $2.31 Thursday, and several stations in Lake County bumped prices up closer to $2.50. Still, stations in the county generally remain below the state average. The Shell on Main St. in Lakeport listed $2.07 on Thursday. Rotten Robbie priced regular at $2.09. This is 38 cents lower than a month ago and 72 cents cheaper than a year ago, according to AAA.
Prices have fallen to less than $2 a gallon at numerous Bay Area stations and as low as $1.73 at some Central Valley stores.
“It’s been nice,” said motorist Fred Lee, of Fremont. “But everyone knows it won’t last.”
Californians were paying more than 90 cents a gallon than drivers nationally just a few weeks ago. Now it’s a 59-cent gap: $1.72 to $2.31.
California’s big decline in prices was attributed to an oversupply of winter-blend gasoline. Building the winter-blend inventory with the smog-busting summer version led to huge discounts, according to GasBuddy.com.
“As a result, gas prices plummeted where at one point Los Angeles wholesale gasoline prices were the cheapest in the nation, a rare occurrence,” analyst Will Speer wrote in a blog.
Oil was selling for around $32 a barrel Thursday and is down about 15 percent this year on speculation of the global glut continuing, Iran being back selling oil and brimming U.S. inventories.
Domestic crude oil inventories reached their highest level for this time of year in nearly eight decades, causing prices to remain near their lowest price point since the Great Recession.
High gasoline inventories and continued production are cited as reasons for keeping prices low statewide. According to the latest AAA Fuel Gauge Report, pump prices are down $0.36, with the average price of unleaded regular at $2.49 per gallon as of Thursday.
